Depending on their professions, certain Boston residents may need to keep track of more than one date to pay their taxes. Independent contractors, investors, business owners and those with side jobs may be on a different payment schedule with the IRS. They may need to make quarterly tax payments in order to stay off the agency’s radar.
Each year, there are dates on which these types of Boston residents must make tax payments. For the 2019 tax year, those dates include April 15, June 17, Sept. 16 and Jan. 15, 2020. With the third quarter deadline coming and going, it is a good time to discuss the need for making these payments.
Some people decide not to make these payments and end up owing more than they thought in penalties. When meeting these quarterly deadlines, tax payers should know that the IRS requires at least 90% of the amount owed. That may seem easy enough until individuals attempt to determine what that amount would be.
Planning is crucial when it comes to making these payments. This requires having some idea of what will be owed for the year, which can present a challenge. Looking at the prior year can help to provide an estimate. Keeping up with earnings throughout the year is also necessary in order to make any needed adjustments.
In order to stay out of trouble with the IRS and avoid paying any more than necessary, it would be essential to gain a better understanding of how the quarterly payment system works. A tax attorney can go over an individual’s circumstances and help determine what amount to pay. Utilizing this legal resource could also give a person the information from the U.S. Tax Code needed in order to help ensure that he or she receives every possible deduction and exemption to help keep the amount owed as reasonable as possible.